Saturday, 11 June 2016

Level Playing Field ?

It just does not exist - so forget about it and make the most of what you have !


For Corporate , it is absurd to demand and for a Government , it is futile to attempt to provide a Level Playing Field


There are no two countries where ALL the resources and the ENTIRE industrial Eco-system , is identical or even closely similar



Inputs for any industry are :



#    MANPOWER


    *  Ave age / Education Level / Skills / Work Ethics / Productivity / Working

        Hours / Holidays /  Salaries

    
#    RAW MATERIALS / COMPONENTS AVAILABILITY

    *  Local vs Imported / Supply Chain / Logistics / Duties & Taxes / Quality



#     FINANCE / BANK INTEREST RATES


     *  Equity / Loans / Interest Rates / Collateral / Duration / Terms 




#    LAND / LOCATION ( of manufacturing unit )


     *  Availability / Prices / Transport / Availability of Skilled Manpower 




#    INDUSTRIAL  POLICY ( Central and State Governments )


     *  Exemptions / Incentives / Restrictions / Inspections / Permissions /

         Compliance


#    MARKET


     *  Domestic / Overseas  

  

#    TECHNOLOGY


     *  IPR / Patents Regime / Copy-Rights / Home-Grown / Licensing / Royalty 



#    TAXATION


     *  High / Low Corporate Income Tax / Capital Gains Tax 



#    INFRASTRUCTURE

     *  Internal ( Road-Rail Network / Air-Sea connectivity ) / Warehouses


#   COMPETITION

     Monopoly / Oligopoly / Cartels / Fierce & Free competition of many


Now , Industrialists / Businessmen , all over the World , will continue to compare the INDUSTRIAL INPUTS existing in their own country with the following BENCHMARKS :


#   Most Business Friendly ................................... Ireland

#   Lowest Corporate Tax...................................... Kuwait ( 0 % )

#   Lowest Hourly Wages ( PPP basis ).................... Bangladesh ( $ 0.25/hr )

#   Highest Working Hours.................................... Mexico ( 42.5 / week )

#   Least Govt mandated paid holidays................... USA     ( Nil )

#   Highest Manpower Productivity......................... Switzerland

#   Lowest Bank Interest Rates.............................  Denmark ( 0.05 % )

#   Demographic Advantage of a Young Population....India 

#   Ease of Introducing unpopular reforms..............  China ( Dictatorship )  


There is , quite likely , some parameter on which a Country can claim to have distinct advantage over all the other countries

It could have something to do with its Geographical situation / Historical evolution / Political System / Legal Frame-work / Societal Norms etc

It is not possible to replicate advantages of all of these Benchmark Countries , into any one single country

At the same time , it is very important to keep studying these Benchmarks and ask ourselves :

"  How have these countries managed to reach , where they are ?

   What REFORMS can we introduce in our own system to catch-up ?

   Are there any parameters in which we ourselves are a Benchmark to others ?

   What should we do so that we do not slip-up where we are ourselves , some

   kind of a Benchmark , to the rest of the World ? 

----------------------------------------------------------------------------------------

12  June  2016

www.hemenparekh.in / blogs

-----------------------------------------------------------------------------------------

Make    Yourself    Heard


Dear Visitor :


It is time for YOU to speak up - and demand that YOU are heard


By emailing this suggestion - incorporating your OWN improvements - to the following Policy Makers


(  Just multiple copy all the following Email IDs into the Recipient column of your Outlook and Copy / paste this suggestion in the Message Box ) :



narendramodi1234@gmail.com; 38ashokroad@gmail.com;ajaitley@del5.vsnl.net.in; jayant.sinha19@sansad.nic.in;piyush.goyal@gov.in;nitin.gadkari@nic.in; spprabhu1@rediffmail.com;bandaru@sansad.nic.in;smritizirani@nic.in;nsitharaman@nic.in; ravis@sansad.nic.in;sureshprabhu@irctc.co.in;prakash.j@sansad.nic.in;secy-ipp@nic.in; amitabh.kant@nic.in; shaktikanta.das@nic.in; rsecy@nic.in; adhia1981@gmail.com; ceo-niti@nic.in; atul-chaturvedi@nic.in; uma.bharati@sansad.nic.in; d.pradhan@sansad.nic.in; rprudy.office@gmail.com; rudypr@rediffmail.com; eam@mea.gov.in; mosvks@mea.gov.in; mvnaidu@sansad.nic.in; mnaqvi@sansad.nic.in; rao.inderjit@sansad.nic.in; mljoffice@gov.in; sadananda.gowda@sansad.nic.in; ministerminority@gov.in; najmah@sansad.nic.in; minister-ca@nic.in; ramvilas.paswan@sansad.nic.in; gandhim@sansad.nic.in; akumar-alpha@sansad.nic.in; jpnadda@sansad.nic.in; hm.moca@nic.in; geete@sansad.nic.in; simratbadal@yahoo.com; ns.tomar@nic.in; rmsingh@sansad.nic.in; tc.gehlot@sansad.nic.in; dr.harshvardhan@sansad.nic.in   


     

No comments:

Post a Comment